Pub giant puts three hotels on the market

AUSTRALIA’s largest pub landlord is selling three of its southeast Queensland hotels, which have a combined book value of almost $20m.

ALE Property Group has put the Kedron Park Hotel and Edinburgh Castle Hotel in Brisbane’s inner north and Pelican Waters Tavern on the Sunshine Coast on the market, either in one line or individually.

They will go to auction on March 31 through Burgess Rawson and are leased to Australia’s largest pub operator ALH, which is on a 25-year term to 2028 plus four 10-year options to 2068.

Burgess Rawson Queensland sales director Glenn Conridge said the properties presented one of the biggest market opportunities in recent years to secure prime southeast Queensland pubs.

“Single tenanted pubs on this scale that are on long leases to Australia’s largest pub operator ALH don’t hit the market often,” he said.

“The Pelican Waters Tavern is a stunning waterfront pub and bistro, while the Edinburgh Castle Hotel and Kedron Park Hotel offer significant high-profile main road frontages to busy Gympie and Lutwyche roads in Brisbane’s inner north.

“All three properties include an on-site BWS liquor store, sports bar, gaming room and bistro providing multiple revenue streams, which underpin the strength of these investments,” Mr Conridge said.

They will be auctioned alongside the famous Top Pub hotel in Morwell, Victoria.

According to the ALE website, Pelican Waters Hotel is valued at $7.6m, Edinburgh Castle Hotel at $7.5m and the Kedron Park Hotel at $3.4m.

ASX-listed ALE owns the freehold of 86 pubs around Australia, which have a combined value of more than $1.2bn.